Founded in 2004, THG is a vertically integrated, digital-first consumer brands group that operates three distinct businesses: Beauty, Nutrition and Ingenuity. Each one has been scaled from the UK to hold leading positions globally.
THG offers customers end-to-end services, from the development and manufacture of products to brand building and retailing products through THG owned and operated websites. THG connects brands to consumers worldwide.
Operating according to five main values – ambition, leadership, innovation, decisiveness and collaboration – THG makes an impact through digital transformation, innovation and expertise, building category-leading brands on a global scale.
With 7,000 employees based in the Manchester headquarters and around the world, THG has developed a portfolio of leading consumer brands and accelerated direct-to-consumer growth for third-party clients. Last year, THG generated a group revenue of £2 billion, a 78% improvement in adjusted EBITDA from 2022.
Steps to sustainability
THG is a global dig wellness and spor solution, Ingenuity Officer Mark Jones Report by Antonia
“As THG continues to grow, we are committed to embedding sustainability into everything we do,” said Chief Sustainability Officer Mark Jones. “Our goal is to be a force of good in the world.”
THG submitted its sustainability targets to the Science Based Targets Initiative, which were then approved in September 2023. In the journey to becoming net zero, THG has committed to reducing 42% of Scope 1 and 2 greenhouse gas (GHG) emissions by 2030, from a 2020 base. Furthermore, the company plans to reduce Scope 1 and 2 GHG emissions by 97.7% by 2040.
Additionally, THG aims to power all geographical operations with 100% renewable energy, achieving 66% year-to-date, and for all own brand key commodity materials to be deforestation-free by 2030.
All these targets set a clear path for THG to achieve its sustainability goals, whilst
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also supporting customers on their sustainability journey.
“THG Group is committed to meeting the Paris Agreement of achieving net zero emissions by 2040, 10 years ahead of target,” explained Mark. “We developed THG x Planet Earth - a strategy for a better, sustainable future together, guided by and meeting 11 of the 17 UN SDGs. We have three key priorities: Climate & Nature, Supply Chain & Circularity, and People & Communities. With ambitious goals, we are dedicated to building a more sustainable future.”
The company has engaged employees in sustainability training, promoting environmental practices both inside and outside of operations. Employee education conveys the importance of sustainability, integrating it throughout the company.
Another THG initiative – a Sustainability Ambassador Network – harnesses and develops the staff’s passion for environmental protection and community support. Encouraging engagement in sustainable practices allows real positive change to happen across the company. By 2030, THG aims to send zero waste to landfill and achieve the international third-party standard of TRUE certification. Progress towards these targets will substantially minimise the company’s overall environmental impact.
Less is more
The company has achieved a 24% yearon-year reduction in CO2 emissions per shipment in the UK through its last-mile approach to deliveries. Working with
partners Royal Mail and Paack, THG offers an Eco Delivery option. This optimised system uses postcode data to generate the most environmentally friendly delivery routes, of which, the last mile of the journey is completed on foot, via electric vehicle or bicycle.
Furthermore, THG is improving packaging to promote a more circular economy. The company aims to have 100% of ownbrand packaging to be recyclable and/or reusable by 2025, and is working towards 100% of THG operations and Tier 1 suppliers to achieve Zero Waste by 2030.
In 2023, the recyclability for THG’s own brands was 91%. The company is continuously improving recyclability across its brands. For example, the LOOKFANTASTIC Beauty Box was redesigned to reduce carbon emissions by 72%, and reduce material end-of-life waste by 61%.
“THG is always investing into research and development to promote sustainability throughout the industries we work within,” said Mark. “Innovation sits at the heart of THG. We focus on finding
solutions, using creativity and resilience to drive continuous improvement.
“Packaging plays a huge role in our plans to reach net zero. As a member of the UK Plastics Pact, we are dedicated to achieving our plastic packaging targets. One example of where we are doing this is with our leading sports nutrition brand, Myprotein. We have taken the iconic protein powder pouches and moved to a monomaterial.
“This single-material packaging not only makes it easier to recycle, but the pack is also lightweight and due to its flat-pack nature, it can easily be stacked for transit. This allows us to maximise each delivery journey, minimising carbon footprint.”
To further promote a circular economy, the company’s end-to-end UK cosmetics
manufacturer, THG LABS, develops innovative beauty products. With innovation central to its work, THG LABS is involved in numerous pioneering projects, including collaborating with a biotech company on the creation of a cosmetic oil via fermentation of upcycled waste, to replace more agriculturally intensive oils
Additionally, the team has developed formulations with Carbon Wave, who has created an emulsifier called Sea Balance 2000. This new ingredient is created from an invasive floating seaweed (Sargassum), which is a huge problem for certain regions; Sargassum creates an enormous mass, washing onto beaches and ending in landfill, where it produces large quantities of methane. Among the first users of this material, THG LABS has a library of tested formulations that are ready to go using Sea Balance 2000. The integration of this material into products creates a sustainable solution for the beauty industry.
Partnership for progress
The company established its sustainability solutions provider – THG Eco –in 2021, bringing together practical sustainability solutions to power the company towards its sustainability targets. However, real impact needs coordinated action between governments, organisations, businesses and individuals. That is why THG is leveraging its global scale, partnerships and capacity for innovation in order to help accelerate change for others.
In 2024, THG committed to reduce absolute Scope 3 emissions by 90%, from a 2020 base. Over 97% of THG’s total carbon footprint is attributed to Scope 3 emissions, so the company has developed a sustainability initiative – Partnership in Action (PACT) – to work with suppliers to decarbonise the supply chain.
This initiative has three main objectives: set clear targets, collect and record data, and offer guidance, resource, and support
to THG’s partners and suppliers in their sustainable transition.
“Building relationships with suppliers is essential in decarbonising the supply chain,” explained Mark. “This relies on two main factors: trust and consistency. Active engagement with our suppliers allows initiatives like PACT to be so successful. Becoming more sustainable is a common goal and through collaboration, we can achieve it.”
THG has clear strategies and an established structure on how it will implement sustainability into operations to reach its 2030 targets. The company will continue to reduce its own emissions and waste, whilst encouraging suppliers to do the same, using its influence to be a force for change to leave the world in a better place than it was before. n
